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Ukraine has time until May 31 to reach deal with creditors, preventing default

Earlier, the Ukrainian Finance Ministry confirmed that Kiev had not yet reached a deal with foreign holders of GDP-linked government debt bonds but emphasized its commitment to constructive talks

MOSCOW, April 24. /TASS/. Ukraine should reach an agreement with its creditors on debt restructuring by May 31, according to Verkhovna Rada lawmaker Yaroslav Zheleznyak.

"There is still time until May 31," he wrote on his Telegram channel, adding that the correct wording at this stage is "no agreement yet," as negotiations are ongoing.

Earlier, the Ukrainian Finance Ministry confirmed that Kiev had not yet reached a deal with foreign holders of GDP-linked government debt bonds (GDP warrants) but emphasized its commitment to constructive talks.

According to a statement published by Euronext, Ukraine held consultations from April 15 to 23 with members of the Special Committee, which includes institutional investors holding about 30% of the GDP warrants. During these consultations, Ukraine presented restructuring proposals, but the parties failed to reach an agreement.

As reported by RBC-Ukraine, the $2.6 billion in GDP warrants were issued in 2015 and are set to mature in 2041. Although Ukraine secured a deferral of foreign debt payments from private creditors last year, the GDP warrants were not included in that arrangement. The Financial Times notes that Kiev faces a $600 million payment on these warrants in late May, and failure to meet this obligation could lead to a declaration of default.